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Irish consumer spending records fastest growth in almost two years

Written by Robert McHugh, on 16th Jul 2018. Posted in Financial

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Visa has released its latest Irish Consumer Spending Index today which measures expenditure across all payment types (cash, cheques and electronic payments). The index pointed to a pick-up in the rate of growth in Irish household expenditure in June, Visa believe this was driven by the recent heatwave across Ireland. 

It is estimated that consumer spending was up +5.5% year-on-year in June, up from the +3.7% increase recorded in May, signalling the fastest rise in household spending since July 2016. Growth was also sharper than the average since the series began in September 2014. Solid increases in spending were recorded across both Face-to-Face and eCommerce channels.

The rate of expansion in eCommerce spending (+5.5%) eased to a three-month low in June, while Face-to-Face (+5.4%) saw the strongest rise since January.

The Household Goods sector posted the fastest increase in spending of the eight monitored sectors (+13.0% year-on-year), with home improvement stores selling items like BBQs and garden furniture performing well.

Double-digit growth was also seen in the Hotels, Restaurants & Bars sector (+10%) with publicans and hoteliers reporting a heatwave boost with families enjoying staycations in Ireland, as well as sporting and music events helping to drive footfall.

Commenting on the index, Ireland Country Manager at Visa, Philip Konopik said, "As Ireland enjoyed a heatwave in June, consumer spending continued to tell a positive story recording the fastest rise since July 2016. The good weather benefited the Irish high street in particular, with Face-to-Face spending marking the strongest increase since January."

He added, "Notable winners in the recent heatwave were Household Goods and Hotels & Restaurants, both recording double-digit growth. Food & Drink and Clothing & Footwear also experienced accelerations in spend last month as consumers stocked up on the latest trends and essentials to enjoy the sunshine."

Source: www.businessworld.ie

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